Opportunity Recognition

Journal #7 What really annoys you? What products or services might help? Or What business are you thinking of starting?

Ch. 4 Opportunity Recognition Read Page and answer these questions. Entrepreneurs recognize problems as ______? What did Georgette Klinger start and why? Entrepreneurs hate change. True or False? Entrepreneurs are leaner and faster. Explain this statement.

What is the difference between an idea and opportunity? What does “window of opportunity mean? What simple principle did Russell Simmons apply?

Opportunity Recognition The identification of unfulfilled desires in the market place The creation of ideas for services or products that satisfy those market needs

Market: a group of people potentially interested in buying a product or service. Opportunity Recognition

Product vs. Service Product: something tangible that exists or is made, usually to be sold Service: Intangible work providing time, skills or expertise in exchange for money Opportunity Recognition

The Internal Entrepreneur – Turns hobbies, skills, interests into business opportunities Ex: Ben Cohen & Jerry Greenfield, Ben & Jerry’s Homemade, Inc. Ex: Jasmine Jordan, Tools for Living Magazine Opportunity Recognition

Six Roots of Opportunity 1.Problems that your business could solve 2.Changes in laws, situations and trends 3.Inventions of totally new products or services 4.Competition 5.Technological advances 6.Unique Knowledge

1.Problems that your business could solve 2.Changes in laws, situations and trends 3.Inventions of totally new products or services 4.Competition –Beat competition based on quality, reputation, reliability, location, hours of operation, price. 5.Technological advances 6.Unique Knowledge Six Roots of Opportunity

1.Problems that your business could solve 2.Changes in laws, situations and trends 3.Inventions of totally new products or services 4.Competition 5.Technological advances –Scientists may invent technology, entrepreneurs figure out how to sell the technology 6.Unique Knowledge Six Roots of Opportunity

1.Problems that your business could solve 2.Changes in laws, situations and trends 3.Inventions of totally new products or services 4.Competition 5.Technological advances 6.Unique Knowledge of one’s neighborhood, friends and community Six Roots of Opportunity

External Opportunity Recognition Ex: Opportunity Business Idea Problem: pollution Private Recycling Companies Change: 9/11 Airport Security Training Services Invention: busy people who need to clean their homes roomba Competition: cell phone nighttime minutes AT&T’s nighttime minutes start at 9pm while Sprint’s start at 7pm. Technological Advances: mp3 and digital music players Apple iPod Unique Knowledge: BMX bike racing culture in Santa Fe Bike Store

Opportunity recognition game Your group will decide where each business opportunity goes on the 6 six roots of opportunity game board. Good luck

Business- Formation Opportunities Russel Simmons started Def Jam with a friend. – Money was needed from both partners – Different contacts Everyone you know may have skills, equipment, or contacts. Biz Tip: When putting team together, organize it so that everyone shares ownership.

Cost/Benefit Analysis Every opportunity will require an investment. Investment is money, time, or energy on your part to make a profit. Cost- Money and time you will have to invest Benefit-The rate of return on your money or advancement of career. If the Benefits outweigh the cost, the investment will probably be worthwhile.

Opportunity cost Opportunity Cost is the value of what must be given up in order to obtain something else. EX. Army Benefits – Training and work experience – Travel – Money for college Cost – College immediately – Start a business – Start working Pg. 49 of your book.

Opportunity Recognition Game Students will be split into groups of 3-5 and will be given the board and cut outs. Students will be given time to post the cut outs on the correct opportunity box. Once I say it’s correct you will need to cut out pictures from a magazine that represents each root of opportunity. Good luck!

The Good Business Idea Vs. The Good Business Opportunity

Idea vs. Opportunity Idea Business solution that has yet to be researched and analyzed Opportunity A carefully researched business idea that can earn a profit Think feasibility

Business Idea Brainstorm In groups of 3, brainstorm a business idea – Think feasibility – Think from a student perspective – What can you do tomorrow with the resources you have today?

Some stats on obesity inhabitants have gained 360 million pounds (163 million kgs) over the last decade obesity costs the state billions of dollars in health care, lost productivity and workers' compensation. Portion sizes

Opportunity Screen 1. Is it attractive to customers? Will it work in your business environment? Is there a window of opportunity? Do you have the resources and skills to create the business or do you know someone who does? Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Is it attractive to customers? 2. Will it work in your business environment? Is there a window of opportunity? Do you have the resources and skills to create the business or do you know someone who does? Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? Opportunity Screen

Is it attractive to customers? Will it work in your business environment? 3. Is there a window of opportunity? Do you have the resources and skills to create the business or do you know someone who does? Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? Opportunity Screen

Is it attractive to customers? Will it work in your business environment? Is there a window of opportunity? 4. Do you have the resources and skills to create the business or do you know someone who does? Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? Opportunity Screen

Is it attractive to customers? Will it work in your business environment? Is there a window of opportunity? Do you have the resources and skills to create the business or do you know someone who does? 5. Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? Opportunity Screen

1. Is it attractive to customers? 2. Will it work in your business environment? 3. Is there a window of opportunity? 4. Do you have the resources and skills to create the business or do you know someone who does? 5. Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? If you answer no to even one question, refine the business idea! Opportunity Screen

“Choose a business idea you can start tomorrow with the skills and resources you have today.” Katerina Zacharia Youth Entrepreneurship Educator and Advocate NFTE Certified Entrepreneurship Teacher Idea vs. Opportunity

Perform a S.W.O.T. Analysis During Concept Development

Perform a S.W.O.T. Analysis – Determine the Strengths and Weaknesses of your resources, knowledge, team. – Determine the Opportunities for your business idea, and the Threats to its potential success. During Concept Development

S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats The Entrepreneur, Team The Marketplace

Building S.W.O.T. into the business plan  StrengthsQualifications & Competitive Adv.  OpportunitiesOpportunity for your bus. in market  Weaknesses &Strategy for Threatsminimizing risk & risk management

Why Develop a Business Plan? 1. Forces the entrepreneur to think, critically and unemotionally, about every aspect of a business idea. 2. Serves as a guide for the owner as he or she manages the business towards its success. 3. Shows potential investors that the business is thoughtfully planned. 4. Expresses specifically how the business and its investors can potentially make a profit.

Business Plan Work Groups Brainstorm business ideas, choose 1 Evaluate the opportunity – SWOT Analysis – Opportunity Screen Develop business idea in 3 clear sentences Complete Pg. 586 Your business idea – 1-5 Pg. 588 Opportunity Recognition – 1-2 Pg. 589 Core Beliefs – 1-2